MIDWEST MANUFACTURING IS ROARING

Monday

The headline index advanced to 55.7 in September from August's 53.0 reading, exceeding consensus estimates for a smaller rise to 54.0.

The report suggests the pace of expansion in manufacturing activity across Illinois, Indiana, and Michigan is accelerating.

Below is the full text of the release:

Led by gains in Production, New Orders and Supplier Deliveries, the Chicago Business Barometer gained 2.7 points in September to 55.7.

The Barometer has gained in each of the past three months, the longest run of monthly increases for more than three years. Activity has recovered from April’s three year low of 49.0, although is still only consistent with modest economic growth.

Gains in September Production levels, while healthy, followed a three month slide. New Orders were up for the second consecutive month to the highest level since February. Supplier Deliveries lengthened in September to their highest level since March.

Order Backlogs rose marginally from August, but remained below the breakeven 50 level for the fourth month in a row.

Employment softened for the third consecutive month and was the only barometer component to fall in September.

Inventories continued to contract and Prices Paid fell substantially after rising in the past four months.

Commenting on the MNI Chicago Report, Philip Uglow, Chief Economist at MNI Indicators said, “Activity picked-up again in September close to trend supported by New Orders and Production.”

“While the pick-up is welcomed, growth is far from solid. The easing in the employment component is a notable setback this month, underlying the fragility of the recovery,” he added.